Citigroup (C) plans to raise its quarterly dividend 7.1% to $0.60 per share from its current level of $0.56, it said on Tuesday, as the result of its 2025 Federal Reserve stress test.

With the Federal Reserve giving major financial institutions high marks in its annual stress tests, several large banks raised their dividends.

U.S. banking giants announced plans on Tuesday to raise their third-quarter dividends after clearing the Federal Reserve's annual health check last week. The moves come after the lenders showed they have enough capital to withstand scenarios including a severe economic downturn,